Supermarkets and convenience stores hike food prices by 6 per cent in a single month

Thursday 21 August 2008 23:15 BST

Pricey: Food prices in supermarkets and convenience stores shot-up by 6 per cent in July

Supermarkets and convenience stores put up food prices by 6 per cent in July, official figures show.

It was the largest increase in the cost of food over one month since March 1992.

The figures from the Office of National Statistics will confirm the experience of beleaguered shoppers up and down the country.

Two weeks ago The Daily Mail Cost of Living Index showed the cost of a shopping basket is rising at 25 per cent a year.

The spiralling prices have added an eye-watering £300 a year to the price of a £100 weekly shop.

It also supports research by the EU that shows food prices in Britain are rising more quickly than in similar economies around the world.

This comes on top of cost increases in petrol, gas and electricity which are hitting consumers hard in the pocket.

Britain's biggest grocers claim that while they are passing on some of the increased costs that fall at their door, they are shielding shoppers from the worst of the rises.

A Tesco spokesman said: 'There is no doubt that there is some inflation going on particularly in products containing cereals and wheat.

'But we are keeping a lid on that and stopping consumers seeing the full force of those rises. We have saved customers £620million since the beginning of the year through a combination of price cuts and promotions right across the store.'

Despite rising food costs, the ONS said there was evidence of growth in the discount food sector, which includes chains such as Aldi and Lidl.

This is consistent with recent supermarket industry data which showed the discount sector enjoying its highest market share on record.

It seems Britons are splashing out on clothes and gadgets to cheer themselves up during the downturn.

Sales rose by 0.8 per cent in July compared with the prior month, the ONS said.

There was a 2.8 per cent increase in sales of gadgets such as computer games and mobile phones. Clothes sales were up by 1.5 per cent, while household goods shops - including furniture and electrical items - recorded a 1.6 per cent rise in sales.

Retailers had seen sales fall by 4.3 per cent in June - the biggest fall since records began in 1986.

But Stephen Robertson, of the British Retail Consortium, said: 'Few retailers will recognise this positive picture. Consumer confidence remains low, unemployment is rising and the housing market weakening.'